Iran War Shock Risks Widening Turkey Budget Deficit, Simsek Says

Turkey could see its budget deficit rise above official targets if the Iran war keeps energy prices elevated, Finance Minister Mehmet Simsek said.

Turkey’s fiscal deficit in 2026 may widen to about 4% of gross domestic product from roughly 3% in 2025 if oil prices remain near $100 per barrel, Simsek said in an interview with Bloomberg. He cited the prospect of higher import costs and weaker tax revenues, though said the government’s broad fiscal goals remain achievable.